- Posted By Shiral Alexander
Rental Values On The Up As Investment Properties Throughout The Previous Property Upswing Absorbed
The difference between the capital city and combined regional rents narrowed against high levels of new supply in capital city regions, which slowed rental growth. Now that the lack of supply is starting to tighten rental markets in capital cities once more, this dynamic may change over 2020.
The analysis showed over the month, Sydney, Canberra and Hobart saw the fastest rental increases (each rising 0.7%), followed by Adelaide (0.6%), Perth (0.5%) and Melbourne and Darwin (0.4%). Brisbane experienced the slowest rental growth over the month, at 0.3%. Despite the relatively low growth in the dwelling rental index in Brisbane over the month, this is the highest monthly result for the Brisbane in a year.
Sydney is the most expensive city for rentals with a median dwelling rental value in January 2020 of $574/week. This is despite downward pressure on rents from high levels of property investment during the 2012-17 upswing. Year-on-year, Sydney rent values have fallen, but the rate of decline is shrinking. Median rents across Canberra came in only $18 lower than Sydney, making it the second most expensive market to rent a dwelling across the nation.
Source: 9 Marc, Corelogic